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Blog comments do not reflect the views or opinions of the Author or Ancel Glink. Some of the content may be considered attorney advertising material under the applicable rules of certain states. Prior results do not guarantee a similar outcome. Please read our full disclaimer

Thursday, November 7, 2013

Responsible Bidder Bill Approved by Senate Committee


HB 924, the bill that would insert a "responsible bidder" provision into the Illinois Prevailing Wage Act, was approved by a 10-5 vote of the Senate Labor and Commerce Committee yesterday.   The bill had passed the House in April. 
 
If enacted into law, all businesses seeking to bid on public works projects would be required to have an affiliation with a United States Department of Labor apprenticeship program in order to be eligible to work on a project. This bill would affect local governments by resulting in fewer eligible bidders, less competition, and higher costs for public works projects.  The Illinois Municipal League has gone on record as opposing the legislation.  In addition, the Black Chamber of Commerce testified at the Senate committee hearing in opposition to the bill based on the organization's contention that the bill treats minorities unfairly.
 
We will keep you posted on this bill.

Federal Government Modifies "Use-Or-Lose" Rule for FSA’s


The use-or-lose rule, long a sticking point for employees contemplating participation in flexible spending accounts (also known as FSA's or Section 125 accounts), has become a little more flexible going forward. Now employers offering FSA's can modify their plans to allow for a carryover of up to $500 into the following year, or maintain the grace period which allows employees until March 15th of the following year to use FSA dollars from the previous year. Employees can still contribute a maximum of $2,500 in a year even though they have carried over money from the previous year.

FSA's or Section 125 accounts allow employees to divert wages, on a pre-tax basis, to pay for qualified medical expenses and child care. Until 2005, the IRS rule required that all of the wages diverted to the FSA in a plan year had to be spent by December 31st of that year (or the end of the FSA plan year) otherwise the unused money would be forfeited by the employee. Routinely, as the end of the year approached, employees would stock up on contact lenses, eye glasses and the like so as to not lose their FSA dollars. Worse yet, many employees chose to forego participation because they were unsure of how much or whether they would actually incur medical expenses in the upcoming year.
 
The IRS granted some relief to the use or lose rule in 2005 when it allowed a grace period of two months and fifteen (15) days, or until March 15th, for employees to use their FSA dollars from the previous year. This new modification allows for employees to save up to $500 of unused FSA contributions for the following year, while still making the maximum allowable contribution for that year into the plan. These modifications only apply to health FSA's and do not modify child care FSA's.
 
The timing of the IRS modifications means many employers have to act fast to modify their plans if they so choose. Many employers will soon enter or are already in the open enrollment period for FSA election for 2014. Because employers can only offer either the carryover or maintain the grace period, they should carefully consider whether to change their plan. A review of plan usage, or an employee survey may aid employers in reaching this decision. 
 
Post Authored by Margaret Kostopulos, Ancel Glink

Wednesday, November 6, 2013

Abandoned Property Grants Available for Illinois Municipalities and Counties


Attention Illinois municipalities and counties. The Illinois Housing Development Authority (IHDA) is accepting applications for the Abandoned Properties Program (APP) that provides grants to municipalities and counties for the maintenance or demolition of abandoned residential properties within their jurisdiction.
 
Grant funds may be used for securing, maintaining, demolishing, or rehabilitating abandoned homes. A list of specific activities allowed as part of securing and maintaining properties may be found at Abandoned Residential Property Municipality Relief Program Rules.
 
The maximum grant award will be $75,000. Applications will be ranked according to criteria set forth in the application. The grant funds will be distributed throughout the state geographically as determined by statute. The highest ranking applications in each geographic set-aside will be awarded until funds are exhausted.
 
Applications are available here.

More information on the overall program, process and eligibility can be found by visiting the APP FAQ or by participating in one of the workshops IHDA is hosting, including the following:
 
Live Workshop:
November 5, 2013, 11:00 am
Illinois Municipal League
500 E. Capitol
Springfield, IL 62701
Lower Level Board Room
 
Webinar Workshop:
November 22, 2013, 1:00 pm
The Meeting Number is  8884944032.
The access code is 56589648403.
Through your phone, dial 1-888-494-4032, and follow the telephonic prompts. 


Tuesday, November 5, 2013

Bill Would Return Election Authority to Lake County Clerk


A few months ago, we reported on P.A. 98-115, which amended the Illinois Election Code to, among other things, establish a county board of election commissioners in Lake County. The board of election commissioners would assume the county clerk's responsibilities over the administration of elections in Lake County. The bill was controversial, and almost immediately after it became effective, there was a legal challenge to its constitutionality. There was also talk about repeal of the statute.

House Bill 3656, introduced to remove the contested provisions requiring the establishment of the county election commission, unanimously passed out of committee today.  
 
We will keep you posted on this proposed legislation.

2014 Illinois Municipal Handbook Now Available


We are pleased to report that the 2014 edition of the Illinois Municipal Handbook is now available for purchase from the Illinois Municipal League on its website.
 
The Illinois Municipal Handbook is the must-have, go-to reference book for municipal officials and municipal attorneys.
 
Ancel Glink attorney Stewart Diamond was the primary editor of the 2014 edition, which was produced by the Illinois Municipal League and authored and edited by Ancel Glink attorneys on a non-compensated basis.  This edition provides valuable updates on the laws impacting municipalities and municipal officials.
 
Order your copy now!

 

Monday, November 4, 2013

Seventh Circuit Upholds Denial of Zoning for Bible Camp


A summer camp operator alleged that the Town of Woodboro and Oneida County violated the camp's constitutional rights and RLUIPA in prohibiting the camp from running a year-round bible camp on residentially zoned property.  The district court ruled in favor of the Town and County, and the camp operator appealed to the U.S. Court of Appeals for the Seventh Circuit.  The Seventh Circuit affirmed, also ruling in favor of the Town and County in Eagle Cove Camp & Conference Center v. Town of Woodboro, (7th Cir. October 30, 2013).
 
The Town had enacted a land use plan in 1998 that encouraged low density single family residential development along its lake and river-fronts.  In 2009, the Town adopted a comprehensive plan that incorporated these goals.  The zoning around Squash Lake reflects these goals, and all but seven of the properties in that area were zoned for single family uses.  The seven non-residentially zoned lots were grandfathered with pre-existing uses.  Eagle Cove (plaintiff) wanted to construct a bible camp on 34 acres of property they own on Squash Lake. Those parcels are all zoned for residential and/or residential and farming uses. Eagle Cove filed an application to rezone the property to a recreational zoning district to allow the bible camp.  The County denied the rezone petition, and shortly thereafter Eagle Cove sought a conditional use permit to permit the bible camp while maintaining the residential zoning of the property.  The Town recommended that the County deny the CUP because it was not consistent with the goals of the comprehensive plan, and the County agreed, denying the CUP.
 
Shortly after the denial of the CUP, Eagle Cove filed suit, claiming violations of various constitutional and federal statutes, including RLUIPA, ADA, the Rehabilitation Act. The County and Town filed motion for summary judgment, which the district court granted.
 
The Seventh Circuit first addressed Eagle Cove's "total exclusion claim" under RLUIPA, finding that the zoning decisions did not preclude Eagle Cove from conducting any religious assembly on the properties, just not in the form of a bible camp. Moreover, Eagle Cove could operate a bible camp in many other parts of the County, just not on this parcel.  Second, the Court rejected Eagle Cove's substantial burden claim under RLUIPA, finding that there were numerous other locations within the County for Eagle Cove to place its bible camp.  The comprehensive plan was a neutral land use regulation, and Eagle Cove does not get a "free pass" or special treatment on the basis of any religious purpose.  Third, the fact that Eagle Cove spent considerable time and money on its various zoning applications does not constitute a substantial burden under RLUIPA. Eagle Cove's "equal terms" claim was also rejected, because the ban on year-round recreational camps applies equally to both religious and secular assemblies.

Friday, November 1, 2013

Court Dismisses 1983 Claims Against School District Relating to Failed Referendum


Defendants sued an Illinois school district alleging the district violated their civil rights in engaging in activities relating to a failed referendum to increase the school district's property tax rate.  Peraica v. Riverside-Brookfield H.S. Dist. 208, 2013 IL App (1st) 122351.  Specifically, the defendants argued that the district engaged in illegal electioneering and that the referendum was misleading and understated the amount of the proposed tax increase.  The circuit court dismissed plaintiff's case, and they appealed. 
 
On appeal, the appellate court first analyzed the standard for sufficiently alleging a section 1983 claim against a governmental entity, including a requirement that a plaintiff allege that the government (1) had an express policy that, when enforced, causes a constitutional deprivation; (2) had a widespread practice not authorized by law or express policy, but well settled so as to constitute custom or usage; or (3) the plaintiff's injury was caused by a person with final policymaking authority.  The case contains a detailed analysis of the pleading standards for a 1983 case.
 
The district argued that defendants' complaint failed to allege sufficient facts to support any one of these required allegations.  Plaintiffs conceded that they were not claiming that there was a municipal policy at issue, and the court found that Plaintiffs failed to even attempt to show either widespread practice or that the injury was caused by a final policymaker.  Moreover, the court held that plaintiffs failed to allege a violation of their rights under federal law since their complaint focused on violations of the state election code provisions relating to electioneering, and upheld the circuit court's dismissal. 

Thursday, October 31, 2013

Court of Appeals Stays Ruling in NY "Stop and Frisk" Case


Today, the Second Circuit Court of Appeals granted a stay in the "stop and frisk" case against New York City.   Ligon v. City of New York.  In its ruling, the Court of Appeals criticized the district court judge and removed her from the case, finding an "appearance of partiality surrounding the litigation." The ruling also criticized the district court judge for granting media interviews and for making public statements while the case was pending before her.

Judge Scheindlin (the district court judge) had previously ruled that the NYPD stop-and-frisk tactics violated the rights of minorities in the city.  The Second Circuit did not address the substance of Judge Scheindlin’s decision, instead remanding the case to be assigned to a new judge and to enforce the stay of Judge Scheindlin's previous ruling.

Wednesday, October 30, 2013

Subscription Delays and Problems


I am getting feedback from loyal readers and subscribers to the Municipal Minute blog that they are not regularly receiving blog updates via email or RSS feed.  In looking into this issue, it seems as if the problem lies with Feedburner, the service I use to send out email and RSS updates. 
 
If you did not receive today's blog post (Ethical Advertising Rules Apply to Lawyers) or yesterday's blog post (Local Government Law Seminar in December), please send me an email or comment to this post. 
 
Unfortunately, it does not look as if Feedburner is doing anything to fix this known problem.  I would like to avoid moving all of my subscribers to another service because it will require everyone to revalidate your subscriptions.  However, if the blog posts are not going out, it may be necessary.
 
Thank you for your response and support!

Ethical Advertising Rules Apply to Lawyer's Blogs



Lawyers are subject to a variety of rules of professional conduct, including restrictions on advertising. These rules of professional conduct differ from state-to-state, and are often enforced by the state supreme court, state bar association, or state attorney disciplinary commission or association.

The Virginia Supreme Court recently considered a case involving a state bar association investigation of an attorney's blog where the author discussed a variety of legal issues and cases. Most of the cases discussed on the blog involved cases in which the attorney obtained favorable results for his clients. The state bar association had ruled that the blog constituted advertising under the Virginia Rules of Professional Conduct and violated three separate professional rules of conduct. First, the bar association determined that the blog violated Rule 7.1 of the Virginia rules prohibiting a lawyer from making "a false or misleading communication about the lawyer or the lawyer's services." Second, the attorney violated Rule 7.2 because his blog posts about specific client results did not include prominent disclaimers. Third, the bar found a violation of Rule 1.6 on the grounds that he disseminated client confidences without their consent. Based on these three violations, the bar association ordered the attorney to remove case-specific content for which he had not received client consent and to post a disclaimer on all case-related posts

The attorney appealed to the Virginia Court of Appeals, claiming that the blog constituted political speech, not commercial speech, so it was not subject to the advertising requirements. The court of appeals overturned the bar's ruling that the blog violated Rule 1.6, finding that the information was all public information and the attorney had First Amendment rights to report on what happened in a courtroom. However, the court of appeals did find that the blog posts were commercial, rather than political, speech and required the attorney to post the following disclaimer: "Case results depend upon a variety of factors unique to each case. Case results do not guarantee or predict a similar result in any future case."

On appeal, the supreme court agreed with the court of appeals that the attorney did not violate client confidentialities in reporting on public case information. The court also affirmed the court of appeals ruling that the speech was commercial, not political, and therefore subject to the advertising requirements. The supreme court also upheld the disclaimer requirement for case-related posts.

The attorney appealed to the U.S. Supreme Court, which denied certiorari.

You can read the case here, and a detailed analysis of the case on the American Bar Association's website.

Tuesday, October 29, 2013

Local Government Law Seminar in December


The Illinois Institute for Continuing Legal Education (IICLE) will present a Local Government Law Institute on December 13, 2013.  You can register for the conference here and learn more about the sessions, agenda, and conference faculty here.  Ancel Glink Attorneys Julie Tappendorf and Heather Kimmons will both be presenting at the seminar.
 
The details of the conference and a list of the topics that will be covered are below: 
 
Local Government Law Institute
December 13, 2013
9:30 a.m. to 4:30 p.m.
UBS Tower & Conference Center, Chicago

Intensive training for attorneys whose practices require them to work with and for units of local government.

Government as an Employer
· Interplay Between Disability/PSEBA/PEDA/Workers’ Compensation

Government as a Regulator
· Land Use — LULUs, NIMBYs, NAYOs & Other Controversial Issues
· Commercial, Political, Religious, and Cyber Speech

Government as the Regulated
· Public Access Counselor — A Practical Approach to Dealing with Investigations

Government as a Business
· Risk Management & Defense: Protecting and Defending Units of Local Government From Liability

Government as Government
· Dealing with the Challenging Boards

Monday, October 28, 2013

Village Cannot Impose Stormwater Fee on Tribal Land


The Village of Hobart, Wisconsin enacted an ordinance imposing storm water management fees on all land within the Village to finance the construction and operation of a storm water management system.  Members of the Oneida Nation of Wisconsin, an Indian tribe, sued the Village, claiming that the Village was prohibited from imposing the fee on 148 parcels of land owned by the Oneida tribe.  The tribe relied on federal law that prohibits the taxation of "tribal trust land."  In this case, the 148 parcels of land were located throughout the Village rather than within the confines of an Indian reservation. The district court ruled for the tribe, and the Village appealed to the Seventh Circuit.  Oneida Tribe of Indians of Wisconsin v. Village of Hobart, Wisconsin.
 
The Seventh Circuit stated the question of the case as follows:  Has the federal government authorized municipalities to assess fees on Indian land in the Village to pay for its storm water management program?   Although the court acknowledged that municipalities have some limited authority over Indian territory within their boundaries, in this case the Village had no authority to impose fees to fund its storm water management program because federal law forbids states and local authorities to tax Indian lands.  The storm water fees, in this case, were more in the nature of a tax because it is designed to generate revenue to pay for a government project, not a fee for a service provided to a particular property owner.  As a result, the appellate court agreed with the district court that the storm water management fees could not be imposed on Indian land.